Sri Lanka cable maker makes tidy profit in December quarter
EconomyNext – Sri Lankan cable maker Sierra Cables reported a net profit of 212 million rupees in the quarter ending 31 December 2015 compared with a profit of 7.3 million rupees the year before.
Sales doubled to 1.1 billion rupees, the company, which makes power and communication cables and wires, said in a stock exchange filing.
Earnings per share for the December quarter were 39 cents compared with 0.01 cents he previous year.
The company has been benefiting from falling prices of copper, a key raw material, and recovering from losses suffered from fraud which forced it to write down inventory and finished goods amounting to 220 million rupees in the 2014 financial year.
Annual group post-tax losses had increased from 24.5 million rupees in 2013 to 306.4 million rupees in 2014.
But Chairman Priyantha Perera told shareholders last year that a recovery was in progress with a big order surpassing one billion rupees, which he said would "contribute significantly" to growth plans.